SEC Sues Exec Under ‘Clawback’ Law

PHOENIX (CN) - The SEC wants the former CEO of CSK Auto Corp. to pay back more than $4 million in bonuses and stock profits that he made while the auto parts company was committing accounting fraud. Maynard Jenkins, of Scottsdale, is the first person sued under "clawback" provisions of the Sarbanes-Oxley Act, the SEC said in announcing its federal lawsuit.

Jenkins made $2.1 million in bonuses and $2 million from sales of CSK stock and must reimburse the company under Section 304 of Sarbanes-Oxley, the SEC says.

The SEC in March charged for CSK executives with securities fraud and in May filed a settled enforcement action against the company for filing false financial statements.

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